The amount of Bitcoin held on centralized exchanges has steadily declined since late May, with around 2,000 BTC (valued at around $ 66 million at current prices) flowing out of the exchanges every day.

Glass knot of July 12th Week on the chain The report shows that Bitcoin reserves on centralized exchanges have dropped to levels not seen since April, the month when BTC shot to an all-time high of around $ 65,000.

The researchers note that during the bull run that led to this climax, the relentless depletion of foreign exchange reserves was a major issue. Glassnode concluded that the majority of that BTC went to the Grayscale GBTC Trust or was accumulated by institutions, resulting in “a continuous net outflow from exchanges.”

However, when the Bitcoin price fell in May, that trend was reversed as the coins were sent to exchanges for liquidation. Now the net transfer volume has returned to negative territory with increasing outflows.

“On a 14-day moving average, the last two weeks in particular have seen a more positive return on exchange rate flows at ~ 2,000 BTC per day.”

The report also notes that the share of foreign currency deposits in on-chain transaction fees has fallen to a dominant 14% over the past week, after a short-term high of around 17% in May.

Online fees associated with withdrawals rose from 3.7% to 5.4% this month, indicating a growing preference for accumulation over sales, she added.

Connected: Bitcoin price drops below $ 33K, but on-chain data suggests BTC accumulation

The decline in foreign exchange reserves appears to coincide with an increase in capital inflows into decentralized financial protocols over the past two weeks.

According to DeFiLlama, its total value has increased 21% since June 26, when it rose from $ 92 billion to $ 111 billion.